TeleCommunication Systems Adds 10 U.S. Patents Advancing Location-Based Services, Messaging, GIS/Mapping and Wireless

ANNAPOLIS, Md., July 31, 2014 /PRNewswire/ -- TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a world leader in highly reliable and secure mobile communication technology, today announced that the U.S. Patent and Trademark Office (USPTO) has issued TCS 10 U.S. patents during the second quarter of 2014. TCS also received two foreign patents during the quarter.

News Facts:

The 10 recently issued U.S. patents describe innovations in messaging, location-based services, GIS/mapping and wireless. They include the following three:

• TCS reported in the first quarter that it was issued a Prepaid Short Messaging Services patent. In the second quarter, TCS received notice that another prepaid patent was issued to the company that will serve as one of the cornerstone patents in a monetization program that TCS is planning to launch later this year. The prepaid market has grown into a multibillion-dollar per year industry, with 86 million prepaid users comprising 27 percent of all U.S. wireless users, according to a J.P. Morgan 2013 market report. The recently issued Prepaid Short Messaging patent (U.S. 8,738,496) is a continuation of earlier TCS prepaid patents, bringing TCS' prepaid messaging portfolio to eight, with one additional pending. Most prepaid phone systems allow users a prescribed amount of prepaid messaging and wireless call time. The '496 patent describes techniques for determining if a recipient's account is sufficiently funded to receive a message. If it is not, the system prevents the delivery of messages until the recipient's account is sufficiently funded, when follow-on messages will be delivered.
• A geofence defines a virtual spatial boundary for creating triggers when a mobile device either enters or exits that boundary. Geofences are commonly used in child location services to alert parents when a child's mobile device leaves the boundary of a school or park, or by enterprises to track the location of a mobile workforce or equipment. Establishing a geofence can be complicated, requiring that the user manually draw the boundary on an electronic map. The recently issued TCS patent covering a Method and System for Identifying and Defining Geofences (U.S. 8,731,813) describes techniques to simply and easily create geofences based on real-world objects or places. Using the map/navigation application on a mobile device, the user simply selects the desired location, using its pre-defined boundary to create the geofence.
• Thousands of portable computing platforms have emerged that have the capability of directly connecting to the Internet either through a wireless wide area network (e.g., cellular network or campus WiFi network) via a front-end built into the device (smartphone, etc.), or, via Bluetooth or other short-range wireless communication, to a wireless proxy device such as a modem or a smartphone. With various low-cost, short-range wireless devices installed in vehicles for navigation or entertainment purposes, it has become increasingly important to provide an easy and efficient method for a motor vehicle manufacturer, parent or other authority to monitor and control access to certain sites when those devices are connected to the Internet. The recently issued Remotely Provisioned Wireless Proxy patent (U.S. 8,712,408) describes techniques to create white lists (allowed URLs) and black lists (disallowed URLs) within a wireless/mobile device acting as a proxy so that access to certain sites can be controlled effectively.

The remaining seven U.S. patents issued in the period are: Integrated, Detachable Ear Bud Device for a Wireless Phone (U.S. 8,688,174); N-Dimensional Affinity Confluencer (U.S. 8,688,087); Login Security with Short Message (U.S. 8,712,453); Intelligent Reverse Geocoding (U.S. 8,731,585); Secure Location Session Manager (U.S. 8,687,511); System and Method for Location Assurance of a Mobile Device (U.S. 8,718,673); and Wireless Network Tour Guide (U.S. 8,744,491).

TCS Chairman, President and CEO Maurice B. Tose said: "TCS continues to expand and safeguard the company's investment in our engineers' inventions. These 10 new patents further demonstrate our investment in innovations that enhance the connected lives of millions of wireless users and their families while at work, home or play."

TCS Vice President of Intellectual Asset Management Bob Held said: "TCS continues to monetize its intellectual property portfolio via sales, direct licensing, cross licensing and other creative solutions. In the second quarter, we closed a patent transaction with a confidential buyer for a portion of our messaging portfolio and wireless data patent assets. Through the third-party enforcement entities that we have engaged, we reached two broad settlements in two separate technology litigation initiatives this quarter. In addition, a new litigation initiative involving seven new enforcement cases began. In the first half of 2014, TCS filed for 31 U.S. patents; at June 30 the total number of patents issued worldwide in the portfolio was 361, and more than 300 patent applications were pending worldwide."

About TeleCommunication Systems, Inc.
TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS) is a world leader in highly reliable and secure mobile communication technology. TCS infrastructure forms the foundation for market-leading solutions in E9-1-1, text messaging, commercial location and deployable wireless communications. TCS is at the forefront of new mobile cloud computing services, providing wireless applications for navigation, hyper-local search, asset tracking, social applications and telematics. Millions of consumers around the world use TCS wireless apps as a fundamental part of their daily lives. Government agencies utilize TCS' cybersecurity expertise, professional services and highly secure deployable satellite solutions for mission-critical communications. Headquartered in Annapolis, MD, TCS maintains technical, service and sales offices around the world. To learn more about emerging and innovative wireless technologies, visit www.telecomsys.com.  

Except for the historical information contained herein, this news release contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. These statements are subject to risks and uncertainties and are based upon TCS' current expectations and assumptions that if incorrect would cause actual results to differ materially from those anticipated. Risks include the possibility that no revenues will result from our monetization efforts, that issued patents will prove to be less valuable than assumed, and those detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended December 31, 2013, and on Form 10-Q for the quarter ended March 31, 2014.

Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update or revise the information in this press release, whether as a result of new information, future events or circumstances, or otherwise.

SOURCE TeleCommunication Systems, Inc.